Backyarding : Theory and Evidence for South Africa

This paper explores the incentives for backyarding, an expanding category of urban land-use in developing countries that has proliferated South Africa. The theoretical model exposes the trade-off faced by the homeowner in deciding how much backyard...

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Bibliographic Details
Main Authors: Brueckner, Jan K., Rabe, Claus, Selod, Harris
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/491081541096912553/Backyarding-Theory-and-Evidence-for-South-Africa
http://hdl.handle.net/10986/30842
Description
Summary:This paper explores the incentives for backyarding, an expanding category of urban land-use in developing countries that has proliferated South Africa. The theoretical model exposes the trade-off faced by the homeowner in deciding how much backyard land to rent out: loss of yard space consumption in return for a gain in rental income. Under common forms for preferences, the homeowner's own-consumption of yard space falls as land rent increases, causing more land to be rented to backyarders. With better job access for backyarders raising land rent by increasing their willingness-to-pay, the analysis then predicts that the extent of backyarding will be higher for parcels with good job access. This hypothesis is tested by combining a satellite- based count of backyard dwellings per parcel with job-access data. The empirical results strongly confirm the prediction that better job access increases the extent of backyarding.